Our credentials | KPMG | RU

Our credentials

Our credentials

The highlights of our successfully completed projects.

The highlights of our successfully completed projects.



Development of the Program of improving efficiency of stock breeding activity and the system of government support of pedigree livestock farming in Russia

Client

A non-profit organization “National Dairy Producers Union” (Soyuzmoloko) that unites over 200 companies from Russia, Belarus, Estonia, Italy, and the Netherlands accounting for 70% of milk and dairy products produced in Russia.

Problem

No positive results from the program of supporting pedigree dairy cattle farming.

Solution

KPMG professionals focused on four key issues:

— efficiency analysis of the current system of pedigree dairy cattle farming: compilation of a list of performance indicators in livestock farming, system efficiency analysis by selected indicators and best practice benchmarking;

— efficiency analysis of current government support: pinpointing of relevant objectives of the government support program and comparison of these objectives against the identified industry development issues in order to estimate differences; analysis of impact of the government support program on the industry and livestock farms, GRP and regional budgets;

— best practice analysis: analysis of key elements of livestock farming systems in certain countries, analysis of results of implementing government programs of livestock farming support in various countries, including valuation of objectives, measures, duration of programs and results thereof;

— development of the Program of improving efficiency of stock breeding activity and the system of government support of pedigree livestock farming in Russia: development of purposive steps to achieve targets, identification of top priority measures; calculation of the level of financing required to implement the Program, measurement of potential budget efficiency and multiplier effect from Program implementation, analysis of legal documents to prepare a list of necessary amendments.

In order to discuss each issue analysis results and measures designed to improve industry efficiency, a work team comprising representatives of the business, industry bodies, state authorities, research institutions, and international experts was established. During the project the work team had 6 meetings.

Result

The Program of developing dairy stock farming and improving efficiency of government support in the Russian Federation has been developed, including target KPIs and key measures for their achievement.

Why KPMG

KPMG competitive advantages which helped solve project tasks:

— in-depth global industry experience;

— a team of skilled professionals with significant experience in developing the agricultural sector;

— experience in assisting with the preparation of government programs;

— experience in analyzing the efficiency of government programs of supporting business.

 

Development of a business diversification strategy for a major agro-industrial holding company

Client

A major Russian agro-industrial holding company.

Problem

Inadequate transparency of financial/tax accounting and poor operational process efficiency.

Solution

• Preparation of a feasibility study and a Shared Service Center creation plan:

‒ development of a business case for the creation of the Shared Service Center (SSC) that involved calculation of operating expenses and operational savings against current costs and estimation of the SSC payback period;
‒ scoring model of location options;
‒ a high-level plan of creating the Shared Service Center (including key points of integration with the SAP implementation schedule).

• Development of a target SSC operating model:

‒ detailed operating model;
‒ target business process model (list of accounting processes and stages thereof to be provided to the SSC);
‒ SSC service model;
‒ conceptual design of the electronic document management system (EDMS);
‒ recommendations on financial/tax accounting methodology;
‒ areas of possible reduction in accounting close timelines;
‒ development of the SSC HR strategy.

• Change management:

‒ development of a comprehensive change management plan (risk identification);
‒ preparation of the personnel communication plan.

Result

The Shared Service Center compliant with the target operating model has been opened. The target model provided for a significant improvement in transparency and controllability of the function. Furthermore, a new centralized model enabled the client to reduce the reporting timelines and improve the financial statements quality.

Why KPMG

Assistance provided by the KPMG Global Center of Excellence is highly instrumental in implementing SSC projects, no matter how complex they are. The KPMG project team makes use of approaches and methods that have been tested in hundreds of client projects all over the world, and state-of-the-art technologies and instruments are tailored and adapted to specific company needs.

 

Deal Advisory – buy-side advice and completion support

Client

Charoen Pokphand Foods Public Company Limited (CPF), a leading Asian agro-industrial and food conglomerate.

Problem

Acquisition of the Severnaya and Woyskovitsy poultry farms in Russia – the largest deal in the Russian agriculture sector since 2010. The Russian poultry sector had seen strong price growth during the second half of 2014 as consumers switching to lower cost sources of protein in the wake of the economic downturn and counter-sanctions imposed on food imports, followed by rapidly escalating cost of imported raw materials due to the sharp depreciation of the rouble from Q4 onwards. As a result, it was imperative that we were able to help our client understand the underlying trading performance of the Target, and impact on the transaction, specifically in relation to working capital.

Solution

A cross-border KPMG team from Thailand, Russia and the Netherlands provided financial, tax, HR and IT due diligence, SPA and tax structuring advice, and completion accounts assistance. оказывала содействие в подготовке передаточной отчетности.

Result

Through the due diligence we helped our client to understand the underlying drivers of financial performance, net debt and normalized working capital position, and tax risks. Based on this, we were able to advice on the most appropriate deal structure and how to protect value and mitigate against risks via the transaction documents. Ultimately helping our client to successfully close the deal.

Why KPMG

Our global reach, combined with deep industry insights and cross-border expertise, enabled us to deploy dedicated senior advisors supported by an integrated multi-disciplinary team to focus on assessing the key drivers of deal value, identify issues, risks and mitigating actions to protect value post deal.

Go back to the list of projects.

Контакты

KPMG services for agricultural companies

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Agribusiness Agenda 2016, Vol2-Foresight to the future

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Global strategy consulting

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Deal Advisory

KPMG experts help you navigate a complex process

 
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